Call for new Bretton Woods conference to stop systemic collapse

As the summer vacation period draws to an end, decisions taken
over the next few weeks will be crucial for the future of international
peace and cooperation. In the trans-Atlantic world,
there are many dangers lurking, the most pressing being that
of a new financial crash, which will be much worse than that
of 2008. It is being driven, most immediately, by the reverse
carry trade out of emerging markets into the dollar due to
the “tapering” of quantitative easing by the Federal Reserve,
but beyond that, the entire system, with its quadrillion dollar
bubble of financial derivatives, is rotten and condemned to collapse
one way or another.

That factor helps to explain why, on a military level, NATO
is escalating the provocations of Russia in the attempt to hold
on to the balance of power. Thus, the largest maneuvers in the
post-war period are scheduled in autumn along the borders
with Russia, involving some 40,000 soldiers. In spite of U.S.
President Trump’s stated intention to improve relations with
Moscow, they have in fact worsened, due to the “war party”
that dominates both parties in the United States, and is desperately
trying to bring down the Trump presidency (cf. below).
New, extremely harsh sanctions decided by the US Congress
are to go into effect soon against Russian officials and institutions
on the basis of totally unproven allegations, concocted
by the British secret services, concerning the use of chemical
weapons. Government officials, including Prime Minister
Medvedev, characterize the move as “economic warfare” and
threaten retaliation.

Syria too represents a flash point. The government has
warned that Western-backed Jihadi forces are planning a new
chemical weapons attack in Idlib, which can be blamed on the
Syria government forces that are moving in to liberate the
region.Relations between China and the trans-Atlantic world, meanwhile,
are tense, mainly due to trade issues, and fear that “win
win” cooperation will sweep away the old geopolitical order
altogether.

Nonetheless in Europe, a broad-based revolt is developing
against the austerity policies dictated by Brussels on behalf of
the major banks, and demanding an end be put to the “cold
war” policy.In that respect, the orientation defended by at least some in
the new Italian government of demanding productive investments
and cooperation with China, in particular in developing
Africa, offers a way out of the straitjacket imposed by the European
Union (cf. below).

Given this array of dangers, beginning with the coming financial
collapse, the Schiller Institute is circulating the petition
which we published in the last issue, calling on the leaders of
the United States, Russia, China, and India to address the issues
on a a higher level, and organize a new Bretton Woods conference.
As Helga Zepp-LaRouche explained on Aug. 23, they
could “ preempt the danger of a financial crash” by returning
to a system of fixed exchange rates, and establishing a credit
system in order to “facilitate cooperation in the context of the
New Paradigm, and with the Belt and Road Initiative.”
Is that a realistic perspective, she asked. “Well, I think it is.
Because Russia, China, and India are already very strongly cooperating
along these lines.

And Trump has proven, in his initial
relationships… that he is capable of going in this direction….”
An alliance of the four powers would not be exclusive, Helga
Zepp-LaRouche insisted, but that combination would be powerful
enough to actually bring about the needed change, which
other countries could and should then join.